Top-Rated Debt Banking And PSU Fund Offered Good Returns, SIP Starts With Rs 500

Banking and PSU plans might be considered if you are investing for three years and are aware of the dangers involved with these funds. They are at risk since they are not backed by the government. The danger is negligible because banks are heavily regulated. Changes in interest rates might also have a negative impact on these plans. Banking and PSU debt schemes, according to experts, are relatively secure since they exclusively invest in banks and PSUs. Here, we have analyzed one such fund. The below-mentioned Banking and PSU mutual fund have given good returns both in annualized and SIP. Check details below!

HDFC Banking And PSU Debt Fund - Direct-Growth

This fund was launched on 26 March 2014 by the HDFC Mutual fund. The fund is a debt Banking and PSU mutual fund. It is open-ended medium-sized banking and PSU mutual fund. The Fund's Direct-Growth plan has Rs 7,964 Cr worth of AUM or fund size as of 31 January 2022. It has declared a NAV of Rs 19.080 as of 02 March 2022. Its expense ratio is equal to its category average expense ratio which is 0.36%. Its returns are average among its peers' mutual funds. It possesses a low risk to investments and is rated 3 stars by the rating agency CRISIL and 5 stars by the Value research. Currently, the fund is managed by fund manager Anil Bamboli. 

The fund's top holdings are in GOI, Axis Bank Ltd., Hindustan Petroleum Corpn. Ltd., Bank Of Baroda, Food Corporation of India. 

 

Returns

Under the Direct-Growth scheme of the HDFC Banking and PSU Debt Fund, it has given good returns, above its category average returns. Since the launch, it has delivered 8.47% average annual returns. See absolute and annualized returns below:

Tenure	Absolute Returns	Annualised Returns	Category Avg
1 Year	5.14%	5.14%	5.02%
2 Year	13.73%	6.65%	6.24%
3 Year	27.14%	8.32%	7.84%
5 Year	45.24%	7.75%	7.46%
Since Inception	90.76%	8.47%	7.45%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	2.28%	4.28%
2 Year	5.54%	5.29%
3 Year	10.54%	6.63%
5 Year	20.82%	7.50%

Should You Invest?

The ability of the HDFC Banking and PSU Debt Fund Direct-Growth scheme to deliver consistent returns is comparable to that of most funds in its category. It has a below-average capacity to limit losses in a sinking market. The fund's credit record is excellent, suggesting that it has lent to high-quality customers. Because most funds in this category lend to stronger borrowers, the risk of default is higher in this fund than in others in the category.

 

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.